Ethena Launches USDtb: A Stablecoin Backed by BlackRock’s Tokenized Treasury Fund
Ethena, a synthetic dollar specialist, has announced the launch of a new stablecoin called USDtb, backed largely by BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL). The move positions USDtb as a distinct offering from Ethena’s existing synthetic stablecoin, USDe, and marks a shift toward a more traditional, fully backed reserves model.
Unlike USDe—an experimental token that maintains its dollar peg using a cash-and-carry trading strategy—USDtb will hold tangible reserve assets equal to the value of every issued token. This approach mirrors familiar models used by leading stablecoins such as USDC and USDT. According to Ethena, more than 90% of USDtb’s reserves will be held in BUIDL, a tokenized fund that invests in short-term U.S. Treasury bills, as well as cash and repos. The remaining 10% will be allocated to stablecoins and other regulated, institutional-grade tokenized U.S. Treasury products to support redemptions.
By tapping BUIDL’s considerable holdings—currently valued at over half a billion dollars in mostly U.S. Treasury bills—USDtb gains access to a robust, highly liquid asset pool. This structure is intended to keep USDtb stable, independent, and insulated from market shocks. Ethena noted that the stablecoin’s backing will be “bankruptcy remote” from other business lines, further reducing risk.
As a complementary product to USDe, USDtb is designed not only to stand on its own but also to strengthen Ethena’s overall ecosystem. In difficult market conditions, Ethena’s governance can partially shift USDe’s backing from its derivative-based positions into USDtb, effectively using it as a safety valve when funding rates turn unfavorable.
The team has addressed concerns from industry observers who worry about how volatility could affect USDe’s strategy. Although USDe has remained stable through recent downturns, Ethena can now dynamically pivot, incorporating USDtb as a stable reserve asset whenever needed. Ethena’s Risk Committee recently voted to include USDtb as an eligible reserve holding for USDe, underscoring its role as a hedge against market turbulence.
In addition to its core reserves, USDtb will benefit from partnerships with Securitize—an issuer for the BlackRock BUIDL fund—and from relationships with multiple custodians, including Copper, Zodia Custody, Komainu, and Coinbase Institutional. The stablecoin will initially be available through whitelisted users who pass regulatory checks. Over time, Ethena plans to list USDtb on centralized exchanges such as Bybit and Bitget, expanding access beyond the platform’s own ecosystem, where USDe already serves as margin collateral.
From a security standpoint, Ethena submitted its protocol for three full audits by Pashov, Quantstamp, and Cyfrin, all of which found no high- or medium-level issues. Ethena and Securitize have also put USDtb forward for Spark’s Tokenization Grand Prix, a competition offering substantial liquidity incentives to top tokenized financial products.
USDe, which reportedly holds the position as the third-largest and fastest-growing USD-denominated crypto asset with over $5 billion in total value locked, will continue to play a central role in Ethena’s platform. With USDtb now in the mix, the company aims to offer users an expanded suite of stablecoin solutions, each suited to different risk appetites and market conditions. In the words of Ethena’s founder, Guy Young, the firm sees “a clear opportunity” in giving its users a new stablecoin option that combines a trusted ecosystem with a markedly different risk profile.